using the picture above: 1.) Price limits are imposed on most future contracts. Now go to ?Copper
Question:
using the picture above:
1.) Price limits are imposed on most future contracts. Now go to ?Copper Future: Price Limits?. For Copper Future, price limit is $0.20 per pound. That mean per contract, price limit is (25,000 pounds * $0.20=$5000). For September 07, 2018 settlement price for Sep 2018 Copper Future was $2.6035 per pound. What will be the upper and lower price limits for Sep 2018 copper futures on September 10, 2018 (per pound). What will happen if price fluctuate beyond the price limit boundaries (for given day)?
2.) If you check ?Copper Future: Product Calendar? carefully, there are future contracts for every month until September 2020, after that only for March, May, July and December. Why is that? Do you think CME exchange forgot to list copper futures for other months for years after 2020? (Hint: Read Copper Future Contract Spec ? ?Listed Contracts? row)
3.) We mentioned several time, buyer can close out his position before the ?first notice day? to avoid deliveries. How is he/she going to ?close out? his/her long position before the ?first notice day?? Explain
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